2.10: Importation Costs

Question 1

What costs are associated with wine that is imported to another country?

Answer 1

• customs duties, taxes

- compliance with labelling laws

Question 2

Give an example of two labelling laws compliance issue that varies between countries.

Answer 2

1. ABV Issues
   - In the EU, the ABV of a wine must be shown to the nearest whole or half unit
   - US law permits a 1.5% variance
   - American wines may need to be relabelled if going to the EU
2. US requires a health warning

Question 3

What is the typical margin range for a distributor?

Answer 3

5-25 per cent